How to Make a Cost Adjustment to an Asset in Oracle R12?

How to Make a Cost Adjustment to an Asset in Oracle R12?

A cost adjustment includes any adjustment that affects the recoverable cost, including a change in cost, salvage value, depreciation, and cost, depreciation expense, ITC ceilings, or bonus rules.

You can manually perform a cost adjustment in the Books window or in the Source Lines window.

You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions. Cost adjustments from Mass Additions are typically coming from Accounts Payable or Project Accounting

1. Manual Cost Adjustment through Book window

Navigation: Fixed Asset Manager→ Assets → Asset Workbench

Query Asset

Select Books button

Then enter asset book name and select current cost

Here you can change asset financial information as per your requirements.

2. Manual Cost Adjustment through Source Lines window

Navigation: Fixed Asset Manager→ Assets → Asset Workbench

Query Asset

Select Source Lines button

Here you can add additional invoice line to existing asset to change asset cost.

You may add positive invoice line to increase Asset cost Or you can add negative invoice line to reduce Asset Cost.

3. Automatic Asset adjustment through Asset Mass Addition

Use asset mass addition window to automatically adjust asset. Cost adjustments from Mass Additions are typically coming from Accounts Payable or Project Accounting